MANILA, Philippines - Manila Water Company said its subsidiary has signed an P800 million term loan facility with the Development Bank of the Philippines through the Philippine Water Revolving Fund.

Manila Water said Cebu Manila Water Development, a joint venture company of Manila Water Consortium and the provincial government of Cebu, will use the loan to partially finance the construction of the Cebu bulk water supply project.

CMWD had bagged the contract for the bulk supply of water in metropolitan Cebu.

The CMWD and MWCD will sign a 20-year water purchase agreement for the supply of 18 million liters per day of water for the first year. This will go up to 35 million liters per day starting the second year up to the 20th year.

"Initial delivery of water is expected 6 months from the signing of the water purchase agreement," Manila Water said.